On July 22, the Environmental Protection Agency (EPA) announced $4.3 billion in Climate Pollution Reduction Grants (CPRG) to states, tribes, municipalities, and coalitions of these entities. Authorized under the Inflation Reduction Act, the CPRG program supports the development and implementation of ambitious state and local plans to reduce greenhouse gas emissions and other harmful air pollution. The twenty-five awardees will deploy the funds to implement climate pollution reduction measures that will significantly decrease emissions across the economy.
The Industrial Innovation Initiative (I3) is encouraged that seven awards will fund projects in the industrial sector, which accounts for approximately a quarter of nationwide emissions. The EPA allocated a total of $636 million for projects in the industrial sector. Pennsylvania will use its $396 million award to establish a competitive grant process for manufacturers of all sizes in the heavily industrial state. The EPA program will also support projects to reduce industrial emissions in three Midwestern states, Illinois, Minnesota, and Nebraska.
Over the next few years, dozens of companies will utilize these funds to electrify their facilities, switch to low-carbon feedstocks, capture and store emissions, and implement efficiency measures. These projects will do more than cut emissions. They will also reduce air pollution and create jobs in communities across the country. By decreasing the carbon intensity of domestically produced goods, CPRG support will make American companies more competitive in the global marketplace. Modernizing the plants that produce the country’s steel, cement, food, glass, paper, and other critical products is a prudent investment in America’s future.
The CPRG awards are only the latest example of increasing federal support for industrial decarbonization. I3 will closely track the implementation of projects funded through CPRG and DOE’s Industrial Demonstration Program to highlight best practices and encourage industrial innovation. This fall, I3 will publish an online industrial decarbonization toolkit that provides information about DOE-funded technical assistance, contact information for relevant federally funded projects, a guide to industrial electrification, and other resources. We look forward to working closely with grant recipients, our members, and other partners to ensure the success of the CPRG program.